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Posted by Tango
on December 4, 2018, 7:32 am
Both KC and RC opened with selling. In KC there were bids placed above the close which set the high for the morning. Since then the market has been quiet. In RC weakness continued and the arb is now 35.26. Spreads are weak in both markets. Yesterday proved the adage that the market looks best at the highs and worst at the lows. 8:00 brought with it buying that took out a lot of sizable offers but once the buying stopped, the market began its slow drift downward, without looking up. It continues to show that the natural tendency of the market is to weaken if there is no intervention from consistent and intense buying. For this morning, bids are beginning to populate the downside both in the front and in forwards. Whether we are seeing the bottom of a new range or not is yet to be seen. For now the market is frozen right above the lows. EM currencies are mixed. USDMXN is 20.3365 -.0165, USDCOP is unchanged at 31.87 and USDBRL is 3.8287 -.0121. All the major currencies are up against the $ which is sharply lower. Metals continue to be strong and equities are weak. Bond futures are slightly higher while crude is up a buck. Softs are mixed with sugar unchanged, cotton higher and cocoa lower.